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# This year Henry will save a certain amount of his income,

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Manager
Joined: 06 Nov 2008
Posts: 53
This year Henry will save a certain amount of his income, [#permalink]

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11 Nov 2008, 15:32
This year Henry will save a certain amount of his income, and he will spend the rest. Next year Henry will have no income, but for each dollar that he saves this year, he will have 1 + r dollars available to spend. In terms of r, what fraction of his income should Henry save this year so that next year the amount he was available to spend will be equal to half the amount that he spends this year?

A. 1/r+2

B. 1/2r+2

C. 1/3R+2

D. 1/R+3

E. 1/2R+3

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Director
Joined: 14 Aug 2007
Posts: 702

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11 Nov 2008, 19:16
haichao wrote:
This year Henry will save a certain amount of his income, and he will spend the rest. Next year Henry will have no income, but for each dollar that he saves this year, he will have 1 + r dollars available to spend. In terms of r, what fraction of his income should Henry save this year so that next year the amount he was available to spend will be equal to half the amount that he spends this year?

A. 1/r+2

B. 1/2r+2

C. 1/3R+2

D. 1/R+3

E. 1/2R+3

E.

let Sv = amount saved, Sp = amount spent this year and I be income

for this year I = Sv + Sp .....(1)

For next year he will have Sv(1+r) dollars to spend and this should equal Sp/2

Sv (1+r) = Sp /2 i.e Sp = Sv (2 + 2r)

substituting this in (1) above,

I = Sv + Sv(2+2r) = Sv ( 3 + 2r) i.e Sv = I * (1/3+2r)

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This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

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Re: income--27   [#permalink] 11 Nov 2008, 19:16
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# This year Henry will save a certain amount of his income,

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